Automotive Sector Improves The Better Public Power Purchase
By : Ahmad Fadli And Aldi Firhand. A | Monday, October 02 2017 - 22:07 IWST
Chevrolet
INDUSTRY.co.id - Jakarta- Bahana Securities believes that the recovery in automotive sales will be an indicator of improved public purchasing power, particularly the middle class.
"A number of positive sentiments began to overshadow the Indonesian economy, the recovery of auto sales and motorcycles in the industry is an indicator of improved public purchasing power," said Plt Head of Research and Strategy Bahana Securities Henry Wibowo, quoting ANTARA, Monday (2/10).
Data from the Association of Indonesian Automotive Industries (Gaikindo) showed that car sales grew 5.6 percent in August 2017 compared to the same period last year or 96,461 units.
Thus, total car sales in the period from January to August were 715,291 units, up 3.8 percent on an annual basis.
Meanwhile, the Indonesian Motorcycle Industry Association (AISI) noted that motorcycle sales rose 5 percent over the same period last year to 554,923 units.
Thus, total motorcycle sales from January to August stood at 3.793 million units.
Bahana estimates that by the end of the year, car and motorcycle sales will be in the range of 3 percent-5 percent. Car sales growth is expected to be better than motorcycle sales due to government-run energy reforms since the beginning of the year.
On the other hand, according to Henry, the move by Bank Indonesia (BI) to cut the BI Rate (BI 7-Day Repo Rate) to 4.25 percent in September will be a boost for the recovery of middle and lower class purchasing power.
"One of the sectors that benefited after BI cut its benchmark interest rate in August and September was the automotive sector, because the purchasing power of middle class people in general bought by installment was quite helpful," he explained.
Read Also
Cipta Perdana Lancar Ready to Expand and Diversify for Sustainable…
Electric Cars are Indonesian Automotive Industry’s Future, President…
Minister of Industry Agus Optimistic 2024 Indonesia's Manufacturing…
Manufacturing Still Accounts for Lion’s Share of Exports: Industry…
DRMA Again Records Increase in Net Profit Up to Double Compared to…
Today's Industry

Kamis, 20 Maret 2025 - 04:15 WIB
Gloria Guevara’s Candidacy for UN Tourism Secretary-General Gains Further Widespread Support after ITB Berlin
Over 200 tourism leaders now support Gloria Guevara’s campaign in an unprecedented show of solidarity with her values and vision for UN Tourism Guevara’s core policy priorities continue…

Rabu, 19 Maret 2025 - 23:43 WIB
OUR OCEAN, OUR ACTION
Between April 28 to 30, the 2025 Our Ocean Conference will be held at BEXCO in Busan, Republic of Korea. The conference is expected to be a milestone event for global action to protect the ocean…

Rabu, 19 Maret 2025 - 23:35 WIB
Boediman Widjaja, Hero of Environmentally Friendly Building Materials for Greener City Development in the Future
Through the cold hands of Boediman Widjaja, waste is no longer just trash but a high-value green product. Processed into eco-friendly building materials, his products now span thousands of prestigious…

Senin, 03 Maret 2025 - 14:03 WIB
Solusi Sinergi Collaborates with Era Media to Reach 40 Million Internet Customers with Artificial Intelligence
PT Solusi Sinergi Digital Tbk (WIFI) announced a strategic collaboration with PT Era Media Sejahtera Tbk (DOOH) to support the WIFI project in marketing affordable internet for the people, which…

Rabu, 22 Januari 2025 - 12:53 WIB
MICE Activities at JCC Halted, PT GSP Continues Legal Process
PT Graha Sidang Pratama (PT GSP), the investor and manager of the Jakarta Convention Center (JCC), revealed that the company is currently unable to run Meeting, Incentive, Convention and Exhibition…
News Comment